By Roberto Pedone
PEWAUKEE, Wis. (
) -- According to Jim Cramer, investing in
On Wednesday's "Mad Money" TV show, he said money flow data is showing that investors are pouring capital into low-yielding bond funds over stock funds.
Plus, some key brokerages, such as
, have reported declines in business. Cramer explained that this means investors are scared of stocks at current levels and are fleeing for the safety of bonds. He told viewers that this is the wrong move because bonds offer no upside, and there are plenty of high-dividend-paying stocks that make for a better alternative.
Cramer pointed out that the U.S. government plans to issue a ton of bonds in the future to finance the growing budget deficits. He warned viewers that it could be very painful to invest in a security that is constantly diluting itself.
With this in mind, Cramer recommended that investors buy high-dividend-yielding stocks that offer better yields than U.S. Treasuries, and have the potential for growth. Some of the names he likes are
Cramer also suggested some stocks that might not have great dividends but offer a great value at the moment. He said
are two names that look attractive and are strong companies.
Recently, Cramer found opportunity in natural gas stocks, stocks to play off the new
Dreamliner and utility stocks. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on
blog posts. (These blog posts might require a
: Cramer thinks it's time for investors to get serious about the natural gas complex. In a
Dec. 15 blog post
, he wrote: "The fuel is coming. The fueling stations are coming. The models are being made, including those by
, which is known much more as a battery and hybrid play." The
: Cramer is starting to get concerned about the rush into high-yielding stocks. In a
Dec. 14 blog post
, he wrote: "In the end, however, I'm becoming wary of a move that I have been saying has to happen eventually. It's just a plain nosebleed at this point." The
: Recently, Cramer highlighted his top three Brazilian stock plays. On
he said steel producer
is a great play on Brazilian infrastructure and that the stock will work right through the World Cup and the Olympics. The
Banco Santander Brasil
: Cramer has spotted a bull market in the utility stocks. In a
Dec. 11 blog post
, he wrote: "Given that rates are going higher -- something that's been a killer to utilities stocks before -- I think these stocks are going up because of demand, the demand for electricity, which had been declining for some time." The
: Cramer sees opportunity in five stocks to play off Boeing's new 787 Dreamliner. On
Wednesday's "Mad Money" episode,
he told viewers to play Boeing's new flagship, fuel-efficient plane through its suppliers. The
: Cramer wants investors to focus on companies with good stories that are being dragged down by commodities and profit-taking. In a
Dec. 11 blog post
, he wrote: "Wasn't
supposed to be disappointing after the November sales came out? But it wasn't. We saw that yesterday with a solid quarter." The
-- Written by Roberto Pedone in Pewaukee, Wis.
(Editor's note: At the time of publication, Cramer owned Pepsi, Costco and Vale for his Action Alerts PLUS charitable trust.)
Roberto Pedone, based out of Pewaukee, Wis., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
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